Forgive and Forget? How Ease and Desirability of Movement Impact Layoff Victim Goodwill

Abstract

With employee layoffs becoming a pervasive practice utilized by organizations to cope with environmental changes, layoff victims represent a growing class of ex-employees for organizations that deserve renewed attention. Existing research has assumed that layoffs essentially represent a permanent termination of the relationship between the employee and the organization, yet empirical evidence suggests that layoff victims may exhibit a willingness to recommend their former employer to others (organizational endorsement) and even an interest in returning for re-employment with the firm (boomerang intentions). We draw on and integrate March and Simon’s voluntary turnover framework and concepts from boundaryless careers theory (physical and psychological mobility) to argue that perceived ease of movement and desirability of movement (person-organization fit) will differentially affect victims’ willingness to endorse or return to a former employer. Specifically, we expect both perceived ease of movement and PO fit will be positively related to boomerang intentions, but only desirability of movement will influence organizational endorsement. Using three-wave longitudinal data collected from individuals laid off from multiple organizations, we find strong support for our hypotheses.